Private equity giant Blackstone plans to snap up a midstream company in the Delaware Basin for $2 billion, it said Monday.
It’s the latest in a series of corporate deals that come as companies jockey for a foothold in the nation’s hottest shale play.
Blackstone’s energy investment arm struck an all-cash deal to buy EagleClaw Midstream Ventures, which operates 375 miles of natural gas gathering pipelines and processing facilities in West Texas.
The Midland pipeline company, owned by Houston private equity firm EnCap Flatrock Midstream, has facilities that process 320 million cubic feet of natural gas a day and is building more facilities to more than double its capacity. EagleClaw’s customers pipe natural gas from across 220,000 acres in the region.
Blackstone expects to close the deal by the end of July. EagleClaw said it would keep its name.